This share is distributed directly to Iowaâs counties according to Exhibit 2,[1] and each are required to set up separate funds to hold their opioid settlement proceeds separate from other local monies.[2]
Counties may agree to sub-allocate their funds to their cities or to the stateâs Iowa Abatement Fund, provided that sub-allocated amounts are also spent on opioid-related expenditures.[3] Cities and counties may also combine their amounts.[4]
Excepting administrative costs and attorneysâ fees,[5] this share must be spent on the uses described in the national settlement agreementâs (non-exhaustive) Exhibit E,[6] which includes prevention, harm reduction, treatment, recovery, and other strategies. Additionally, at least 75% spent on Exhibit E Schedule Aâs âcore strategies.â[7] Localities may not use monies from this share to reimburse costs incurred prior to the settlements.[8]
Localities decide autonomously (but must report expenditures and are subject to audit). Decisionmakers for Iowaâs local governments will ultimately decide for themselves how to spend their monies on Exhibit E uses.[9] Each local fund is subject to audit.[10]
No, supplantation is not prohibited. Like most states, Iowa does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 50% local share may be spent in ways that replace (or âsupplantâ) â rather than supplement â existing resources.
Eventually (public reporting required). Localities that receive settlement funds from the local share âmust prepare and file a public annual report describing [its settlement] expenditures.â[11] As of publication,[12] these annual reports have not yet been made publicly available, either on the Iowa Attorney Generalâs website or otherwise.
Visit OpioidSettlementTracker.comâs for an updated collection of statesâ and localitiesâ available expenditure reports.
Iowaâs allows localities to securitize their share of opioid settlement funds.[13] This means that a locality may choose to sell its right to future settlement payments in exchange for a smaller sum provided up front.
Iowa Opioid Allocation Memorandum of Understanding, Secs. (defining âLocal Governmentâ to mean âall Iowa Counties (regardless of population) and cities, villages, and towns located within the geographic boundaries of the State of Iowa with a population exceeding 10,000â), (defining âParticipating Local Governmentâ to mean âany Local Government that agrees to be bound by a Settlement by Participation Agreement necessary to effectuate that Settlementâ), (â50% to Participating Local Governments ⌠(âLG Abatement Shareâ)â), (âThe LG Abatement Share shall be distributed in direct payments to the Counties that are Participating Local Governmentsâ). County allocations for some of the settlements may be found . â
Iowa Opioid Allocation Memorandum of Understanding, Sec. (âEvery Participating Local Government that receives a Direct Distribution Amount shall create a separate fund on its financial books and records that is designated for the receipt and expenditure of the entityâs Direct Distribution Amount, called the âLG Abatement Fundââ). â
Iowa Opioid Allocation Memorandum of Understanding, Sec. . â
Iowa Opioid Allocation Memorandum of Understanding, Secs. (â50% to Participating Local Governments, less fees and costs allocated to the Iowa Backstop Fund as set forth in Section Dâ), (âThe Parties may use up to 2.5% of the Iowa Abatement Share and the LG Abatement Share for administrative costs for Opioid Related Expendituresâ), (regarding attorneysâ fees), (establishing the Iowa Backstop Fund for attorneysâ fees), (providing for 15% of total Net Direct Distribution Amount for all Litigating Local Governments to be deposited into the Iowa Backstop Fund and prohibiting monies from the Iowa Abatement Share from being used to pay attorneysâ fees). â
Iowa Opioid Allocation Memorandum of Understanding, Secs. (defining âOpioid Related Expenditureâ to mean the national settlement agreementsâ Exhibit E), (âExcept as provided herein, 100% of the Iowa Abatement Share and the LG Abatement Share, regardless of allocation, shall be utilized only for Opioid Related Expenditures incurred after the Effective Date of this MOUâ), (âFunds in a LG Abatement Fund may be expended by a Participating Local Government only for Opioid Related Expendituresâ). See also Iowa Opioid Allocation Memorandum of Understanding, (incorporating the entirety Exhibit E). â
Iowa Opioid Allocation Memorandum of Understanding, Sec. (âThe Parties agree that at least 75% of the Iowa Abatement Share and the LG Abatement Share shall be utilized for only the âCore Strategiesâ listed in Schedule A of to this MOU,â i.e., Schedule A of the national settlement agreementâs Exhibit E). Schedule A of Exhibit E provides nine (9) categories of opioid remediation interventions. See E-1 through E-3. â
Iowa Opioid Allocation Memorandum of Understanding, Sec. (âFor avoidance of doubt, funds in a LG Abatement Fund may not be expended for costs, disbursements or payments made or incurred prior to the Settlementâ). â
Iowa Opioid Allocation Memorandum of Understanding, Secs. (describing âdirect paymentsâ to counties), (describing countiesâ powers to forego their shares or enter into agreements to redistribute funds, further implying their fiscal autonomy). See also Iowa Opioid Allocation Memorandum of Understanding, Secs. (providing for optional sub-allocation of countiesâ amounts to cities, thereby requiring us to expand the reference to localities here to âlocal governmentsâ [rather than merely âcountiesâ]). See, e.g., (reporting debate over board of supervisorsâ uses of funds), (reporting on board of supervisorsâ vote to spend settlement funds). â
Iowa Opioid Allocation Memorandum of Understanding, Sec. (âIf any such audit reveals an expenditure inconsistent with the terms of this MOU, the Participating Local Government shall immediately redirect the funds associated with the inconsistent expenditure to an Opioid Related Expenditureâ). â
Iowa Opioid Allocation Memorandum of Understanding, Sec. (âThe report shall include, though is not limited to, a narrative description of the funded programs; the dollar amount provided; and progress and/or outcomes of funded programsâ). See also Iowa Opioid Allocation Memorandum of Understanding, Sec. (âThe State may utilize the reports in order to report to the public on the use and effectiveness of the Opioid Funds in addressing the opioid crisis in Iowaâ). â
September 1, 2024. â
Iowa Opioid Allocation Memorandum of Understanding, Sec. . â